Mayor Allan Fung is defending his administration’s approach to a proposed net metering agreement with a local renewable energy developer.

The 25-year pact with Warwick-based Southern Sky Renewable Energy – which included a pair of five-year extension options – was initially included under new business at the Sept. 23 meeting of the City Council. It would not have been discussed that night, but would have been referred for consideration at the committee level.

At the outset of the meeting, however, Council President Michael Farina announced that the agreement had been withdrawn and that the administration would instead conduct a competitive bidding process for a net metering arrangement.

In a statement Tuesday, Fung said that as “part of our ongoing efforts to save taxpayer dollars and maximize the benefits of clean energy development,” his administration “has been exploring net metering for some time now and met with various potential developers.”

The agreement with Southern Sky, he said, was not subject to competitive bidding requirements “as this proposal did not involve the purchase of goods or services nor did it involve a sale of city property.” He said Southern Sky – the developer behind commercial-scale solar energy projects off Lippitt and Natick avenues – “was the best opportunity to provide resultant savings to our residents in the most expeditious manner as well provide a community benefit.”

“In light of community feedback, the developer decided to voluntarily withdraw their request for approval of the agreement and indicated a willingness to participate in an RFP [request for proposals] process,” Fung said in the statement. “The city is appreciative of their willingness to continue to work with our community.”

The statement continues: “We as an administration have always believed in transparency and that is why we put forward the proposed net metering solar agreement to the City Council and public for their discussion and consideration.”

Net metering arrangements provide credits for renewable energy contributed to the electric grid. Under the agreement, those credits – valued in the tens of millions of dollars – would have been split between the city and Southern Sky. The agreement was centered on Southern Sky’s Natick Avenue project.

Prior to the Sept. 23 council meeting, the proposed net metering agreement drew wide attention following the appearance of a story on the website GoLocalProv.

Critics decried what they viewed as the negotiation of closed-door deal on the part of the administration, and some asserted political favoritism was at play.

Additionally, the issue of commercial-scale solar development has been the subject of ongoing debate in Cranston, with a moratorium in place on such projects as the city develops new regulations. Residents and officials have been particularly critical of rules that allow for commercial-scale solar installations in areas classified as A-80 residential zoning, largely in Western Cranston.

“I can’t imagine what Mayor Fung was thinking,” Stycos told GoLocalProv regarding the agreement.